Following reports of FHA not meeting the government requirement for reserves FHA mortgage rates have continued to improve. The trend lately has been for the major banks such as Bank of America, Wells Fargo, and Citi to offer FHA 30 year fixed rates at 5% despite lower FHA mortgage rates readily available. Why? It’s probably because shoppers for FHA mortgages are down payment conscious and not necessarily worried about securing a rate below 5%. FHA mortgage rates have trended downward along with conforming mortgage rates for the past few months. A week ago it seemed FHA mortgage rates were better than conforming rates; however, that trend was short lived as conforming mortgage rates have dropped to 4.625% 30-years fixed at par.
Today’s FHA Mortgage Rates
The best way to determine accurate mortgage rates is by studying the wholesale mortgage market. FreeRateUpdate.com research of wholesale mortgage lender’s FHA rates shows no change for today. That’s in line with the lack of economic reports released today and flat 10 year treasury yield. Today’s 30 year fixed FHA mortgage rate is 4.75% at par, though most big banks are offering nothing less than 5% in their advertising campaigns. Today’s 15 year fixed FHA mortgage rate is 4.5%, about a 1/4% above conforming mortgages. Today’s FHA 5/1 ARM rates are as low as 3.875% at par. Par rates are lowest rates without buy down points.